Israel to Publish 4 Billion NIS Bus Tender for Hasmonean Cluster
The National Public Transportation Authority will publish a tender for the Hasmonean bus cluster, splitting it from Ramla-Lod. Egged is barred from participating due to monopoly limits.
The National Public Transportation Authority, headed by Idan Moalem, is set to publish a tender on Wednesday for operating bus lines in the Hasmonean cluster, which includes Modiin and Modiin Illit.
These lines are currently operated by Kavim. The move effectively splits the existing cluster into two: the Hasmonean cluster, whose tender is being published this week, and the Ramla-Lod cluster, covering Ramla, Lod, and Be'er Ya'akov.
The total annual operating cost of the current tender stands at 402.5 million NIS, reaching about 4 billion NIS for the entire period. According to the tender details, the winning company will be required to significantly upgrade the service, including a 10% addition to total operating inputs. In addition, the cluster's bus fleet will expand by 10% to approximately 207 new urban buses.
Egged will watch the tender from the sidelines, as it is barred from participating due to exceeding the framework set by the Competition Authority, which declared it a monopoly. If Egged were to participate, it would breach the annual cap of 35 million kilometers set for it. Furthermore, winning restrictions will be imposed in the region, meaning the winner of the Hasmonean cluster will not be able to win the Ramla-Lod-Be'er Ya'akov cluster.
Either way, the change on the ground will not happen overnight. The entry of the new operator into the area will take place gradually in two stages, implemented within 12 and 18 months from the date of winning the tender.
